BIDV and Bac A Bank agree to terms with Tan Thang Cement JSC on $147 million loan.
The Bank for Investment and Development of Vietnam (BIDV) and Bac A Bank signed a VND3.1 trillion ($147 million) credit agreement on August 13 with the Tan Thang Cement Joint Stock Company for the latter’s Tan Thang cement plant project in northern Nghe An province, with a maximum term of 12 years.
“We believe the project will be quickly completed and create jobs for local people and contribute to local economic development,” Chairman of BIDV, Mr. Tran Bac Ha, said.
The plant is being built in Quynh Luu district and has total investment of VND4.5 trillion ($213.8 million) and a capacity of 1.98 million tonnes of cement per year. This is a key project in the province and on the development planning list of Vietnam’s cement industry to 2020 and orientations to 2030, approved by the Prime Minister in Decision No. 1488/QD-TTg dated August 29, 2011.
Output from the project will be PCB 50 and PCB 40 cement of high quality, with about 30 per cent to be exported to Laos and elsewhere.
Its production line will come from leading cement equipment manufacturers such as Bedeschi (Italy), ThyssenKrupp (Germany), Loesche (Germany), Haver & BOECKER (Germany), and ABB (Switzerland).
Estimated consumption of cement this year is 72-74 million tonnes, up from 1.5 per cent to 2 per cent compared to 2014, according to the Ministry of Construction. Domestic consumption is about 53-54 million tonnes and exports 9-20 million tons.
In the first six months of 2015 cement production was estimated at 34.16 million tonnes, an increase of 6 per cent compared to the same period of 2014. Domestic consumption stood at 25.97 million tons, up 5 per cent, while exports totaled an estimated 8.19 million tonnes, up 7.7 per cent compared to the same period last year.